Source: TH
Context:
The Household Income Survey 2026 is set to be the first survey in India directly measuring detailed household income across all sectors, occupations, and social groups.
Aim: To provide granular insights into household income, expenses, and class dynamics, bridging the gaps left by previous surveys like:
- Periodic Labour Force Survey (PLFS) – focuses on wages and labor market trends.
- Household Consumption Expenditure Survey (HCES) – infers income from consumption patterns.
- RBI Consumer Confidence Survey – tracks perceived income changes over time.
Survey Features
- Income Data Collection
- Records salaries, allowances, bonuses, stock options, leave encashments, severance pay.
- For casual workers: days worked, daily wages, tips.
- For self-employed/agriculture: crops sold, quantity, value.
- For non-agricultural businesses: sector, gross receipts.
- Expense Data
- Captures input costs, rent, raw material, maintenance, and other operational expenses.
- Tracks pensions, family support transfers, remittances, and funds from State/Union government schemes.
- Enables computation of profit margins and household economic vulnerability.
- Household Characteristics
- Covers social group, religion, land ownership, property details, and loans.
- Helps understand income concentration across social groups and employment types.
Challenges Identified
- Sensitivity of Income Questions
- Pilot test in August 2025: 95% respondents found questions intrusive.
- High refusal rates for income taxes, bonuses, and asset details.
- Affluent households asked more questions and expressed greater reluctance.
- Accuracy and Recall Issues
- Respondents often overstated expenses or misreported income.
- Difficulty recalling financial assets, interest earned, and exact earnings.
- Self-employment and agriculture income can be volatile and difficult to quantify.
- Response Hesitation
- Rural respondents generally more compliant; urban/affluent respondents more cautious.
- Government considering self-compilation options for affluent or gated communities.
- Public Awareness and Trust
- Survey teams need to dispel misconceptions, build trust, and deploy local-language staff.
- Outreach campaigns planned to emphasize the importance of accurate data for policymaking.
Significance
- Will provide first-hand data on income distribution, loan burden, and household profitability.
- Enables assessment of government schemes like farmer income support and social welfare programs.
- Critical for policy formulation on social security, taxation, poverty alleviation, and targeted subsidies.
- Helps validate claims such as “doubling farmers’ income” and understand class dynamics in urban and rural India.
